Housing Coalition Urges Senate Finance Committee to Raise Home-Sale Capital Gains Exclusion

The Coalition for Affordability and Prosperity sent a September 1 letter to Senate Finance Committee Chairman Mike Crapo, copying Ranking Member Ron Wyden, pressing for a markup of S.3332, the More Homes on the Market Act. Executive Director Chuck Flint described the measure as a bipartisan correction to a tax rule Congress created in 1997 that caps capital-gains exclusion at $250,000 for individuals and $500,000 for couples, a limit that has not kept pace with home-price inflation.

The proposal would lift those caps to $500,000 and $1 million respectively and index them to inflation, aiming to remove a “stealth tax” that discourages older homeowners from selling. Flint noted the bill’s 22-senator sponsorship, including members from both parties, and its House counterpart H.R. 1340, which has 154 bipartisan cosponsors. He argued that fixing the tax code is within the Finance Committee’s jurisdiction and essential for improving inventory ahead of the November midterm elections, where housing affordability is a top voter concern. The coalition also cited recent Redfin data showing a decline in sales and listings, and referenced polling that shows the issue dominates voter priorities.